UCO Bank Strengthens Financial Health with Rs 620 Crore Q2 Net Profit and Improved Asset Quality

UCO Bank reported a net profit of Rs 620 crore in Q2 FY26 with gross NPAs at 2.56%. The bank showed strong loan growth of 16.67% and deposits up 10.87%, supported by improved credit-deposit ratio and stable CASA, indicating financial stability and operational strength.

UCO Bank, one of India’s prominent public sector banks, has reported a strong performance for the quarter ending September 2025, underscoring its improved financial resilience and operational efficiency. The bank’s consolidated figures reveal a net profit of Rs 620 crore alongside a maintained gross non-performing asset (NPA) ratio of 2.56%, reflecting effective credit management and healthier asset quality.

Key Highlights:

Profitability: UCO Bank posted a net profit of Rs 620 crore in Q2 FY26, demonstrating a turnaround and steady growth momentum compared to previous periods.

Asset Quality: The bank’s gross NPA stood at a manageable 2.56%, indicating sustained efforts in risk mitigation and prudent loan recovery mechanisms.

Business Growth: Total advances surged by 16.67% year-on-year to Rs 2.31 lakh crore, bolstered by strong domestic lending growth of 17.24%.

Deposit Mobilization: Total deposits increased 10.87% YoY, reaching Rs 3.06 lakh crore, with domestic deposits contributing Rs 2.90 lakh crore.

Credit-Deposit Ratio: Improved to 75.56% from 71.77% a year ago, reflecting more efficient deployment of funds in income-generating assets.

CASA Ratio: The current account and savings account ratio remained healthy at 38.11%, nearly stable compared to the previous fiscal year, underpinning low-cost deposit base strength.

Provisioning and Credit Costs: Provisions decreased sequentially, indicating better credit quality and reduced potential losses.

Market Performance: UCO Bank’s stock showed positive traction, with steady gains reflecting investor confidence in the bank’s financial health and growth strategies.

Operational Efficiency: The bank leveraged digital initiatives and customer outreach programs to enhance loan disbursals and deposit mobilization.

Outlook: With the government’s continued support and macroeconomic stability, UCO Bank is strategically positioned for sustainable business expansion and profitability improvement.

UCO Bank’s Q2 results demonstrate solid progress in core banking operations and asset quality management, projecting a positive trajectory amid evolving economic conditions and financial sector reforms.

Sources: Moneycontrol, Economic Times, Screener, CNBC-TV18

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